Department Listing

Staff Listing

Transparency and
Education Leads to Happy Timeshare Owners

By Howard NusbaumSeptember 29, 2014

Last week, the Resort Development Organization (RDO), ARDA’s
European counterpart, hosted their annual convention, RDO5, in London.
Representing the U.S. timeshare industry, ARDA’s immediate past chairman and
current CEO of Holiday Inn Club Vacations, Don Harrill, ARDA Treasurer and
partner at Baker Hostetler, Rob Webb, and AIF Executive Vice President, Darla
Zanini, made the trip with me across the pond to discuss our many shared
successes and challenges within the international timeshare industry.

The event featured fascinating speakers, including Michael
Levie, Founding Partner of CitzenM Hotels, Dean Van Leeeuwen co-founder and
Chief Exploration Officer of TomorrowToday, and YouTube sensation, Louise
Pentland. But one particular speaker—BJ Cunningham, an entrepreneur and founder
of several companies, including the notorious Death Cigarettes—shared a message
that really stood out to me. So simple
yet profound, in just an hour, BJ was able recount with real-life examples the
power of truth and transparency in marketing and sales practices.

While hearing BJ’s dynamic presentation, I began to think
about how transparency has brought potent change to the timeshare industry over
the past couple of decades. Twenty years ago, consumers came for discount
tickets to the attraction de jour only to end up in a timeshare
presentation. These days, our consumers
are educated, and we like that. It doesn’t
mean they won’t exchange their time for the promise of a gift, but they
understand why they’re there and already have a level of interest in the
product. Today’s consumers already know
so much walking into a presentation that they aren’t being sold just any product—they’re
buying what they want.

Timeshare has always offered consistent quality in lodging and
coupled that consistency with the actual discipline to taking a vacation.
It’s that needed annual getaway with friends and family that helps us put our lives
in perspective and renews our spirits. We need to continue to educate new and potential owners, not just about
the product, but about the benefits to our health, our work, and our home lives.
Resources like VacationBetter.org, a consumer-focused website offering valuable
information about buying and owning a timeshare, are there to help consumers
make an educated decision matching their family and financial needs with the
vacation product that is right for them.

VacationBetter.org is a website all about
transparency—no sales tactics, no smoke, no mirrors—just a look at what a
timeshare can offer. ARDA, with the help
of the timeshare community, has invested in this educational tool because, as
we know, an educated prospect is the ticket to a happy owner.

Industry Continues to Expand

By Phil Nix
& Chris FolsomSeptember 25, 2014

Deloitte’s
research for the ARDA International Foundation (AIF) shows that the U.S. vacation
ownership industry has grown at a relatively strong pace, as it continues to
withstand the turbulence observed in the broader economy. In a
longer article from the September 2014 Developments,
we presented selected results of AIF’s Financial
Performance 2014: A Survey of Timeshare
& Vacation Ownership Companies, but a quick glance at the findings
gives the timeshare industry reason to be optimistic.

Timeshare
sales continued to signal significant expansion in the industry.

There
were increased tour flows in 2013, with 2.27 million sales tours hosted over
the year’s span.

Average
volume per guest and transaction value per guest increased from the previous
year.

The
financial performance of the industry is valuable as companies change their
business models and investment strategies.
And based on these findings, we saw another strong year of timeshare
sales, with robust growth and expansion.

You Don't Know What You Don't Know

By Keith Stephenson, Director of State Affairs

September 15, 2014

For the majority of people, not knowing everything about the way their business or industry works is
perfectly alright. The fact is, they don’t really need to know it all in order
to still be effective at their job.

But when it comes to regulators, what they don’t know may
have unintended consequences in the industries they regulate. With all the
priorities on their plate, it’s clear to see how they may not have time to
study certain nuances and business specifics. And that’s why it’s so important
that we do our job of bringing the education to them.

Now more than ever, given the evolution and complexity of
the product, it’s critical these representatives understand how new rules and
regulations will impact the timeshare industry and its owners. To help facilitate
a deeper understanding of timeshare among regulators, ARDA’s Regulatory
Outreach Committee introduced a comprehensive state regulatory/agency education
initiative this year. Over the past eight months, the committee has hit the
road with a presentation to help strengthen relationships with and educate regulators
about the ever-evolving timeshare industry—from product types to legal
structures (and much more). To date, they have presented to regulators in 10
jurisdictions across the United States and the Caribbean, helping these representatives
better understand the product they’re being asked to regulate.

Education is the key to our success, and there’s no doubt
this critical effort is paying off in spades. It’s not just reinvigorating
relationships with officials who regulate our industry—it’s also creating
opportunities to influence future legislative and regulatory changes in the
best interest of the industry and owners alike. In fact, the initiative has
been so successful that the committee is now being proactively reached out to
by regulators, agencies and associations, requesting that they present to them
and their teams. By the end of the year, the team will present in three
additional jurisdictions and at the Association of Real Estate Law Officials’ (ARELLO)
annual convention. They have even been asked to conduct an educational panel
for Real Estate Investigators, so they can better understand the product and more
effectively tackle our shared concern of timeshare fraud.

But with changes in agency staff familiar with the timeshare
industry, and term limits that create turnover in government, educating
regulators is a never-ending process. One thing you can count on—education will
always remain a top priority for us, and ARDA and its Regulatory Outreach
Committee remain committed for the long haul.

Top Timeshare Getaways

In the August feature of Developments,
Geri Bain’s article highlighted several timeshare resorts in some of the
country’s most popular travel spots. This was not only a great read but it also
showcased how vacation ownership provides access to some of the most coveted
experiences in the country – particularly relevant because travelers today are
increasingly choosing vacations based on the experience they want from their
trip.

As many timeshare resorts continue to enhance the vacation
experience for owners by expanding their on-site programs, amenities and
services, our industry is well-positioned to meet this demand. From health and wellness-focused trips to
adventure-based travel, timeshare resorts are packaging some of the best travel
experiences in the hospitality business.
Here is a snapshot of the featured resorts and destinations:

More and more travelers are booking
urban spots for vacations, and NYC is the cream of the crop—with a plethora of
museums, restaurants, plays, shows, shopping, concerts, and sporting events.
Not surprising that vacation ownership properties have high-occupancy rates.
Snapshot: Hilton Grand Vacations, New York Hilton Midtown, The Manhattan Club and Wyndham Midtown 45.

Spa & Wellness: Scottsdale

Arizona
has always had a lead on wellness-packaged vacations, with a high concentration
of top-rated spas and resorts, but it’s also a top timeshare resort
destination. Many properties offer access to off-site excursions such as
hiking, golfing and biking trails. Snapshot:
Four Seasons Residence Club Scottsdale,
Scottsdale Camelback Resort and Westin
Kierland Resort & Spa.

Exotic Beach: Hawaii

Hawaiians are proud of their
heritage and culture, and travelers are enamored to learn of the islands’
history. Many timeshare resorts share
the rich Hawaiian history with guests through cultural on-site programs and
other key vacation components. Snapshot: Westin Kaanapali
Ocean Resort Villas
and The Aulani.

Family Fun: Orlando

We often refer to Orlando as the “timeshare capital of the world,” but
the family aspect of an Orlando
vacation is why it is the nation’s most-visited destination (59 million
visitors in 2013!). A highly-competitive
spot for lodging, timeshare resorts frequently use a “stay to play” concept
that encourages family-fun activities on-site for all ages. Snapshot: Holiday Inn Club Vacations, Summer
Bay Orlando, Marriott Vacation Club’s Harbour Lake,
The Fountains Resort, Bluegreen Vacations.

We think all our timeshare resorts deserve a tip of the hat
for providing better vacations to all travelers!